Functional Dairy Ingredient Market 2022-2032 | Country Level Analysis, Current Industry Size and Future Prospective with key vendors, drivers and trends


With the growing awareness regarding health benefits of the dairy products, demand for new and improved functional dairy foods is set to rise. On the same lines, the popularity of functional dairy foods will further propel the functional dairy ingredient market during the review period. Following the popularity of functional dairy food, manufacturers are introducing more functional dairy ingredients in their product offerings to gain consumer traction and win over the intense market competition.

For instance, Ingredion Inc., the U.S. food company has introduced three new potato starches- the functional dairy ingredients to the product portfolio of its processed cheese providing better functionality and more options to consumers.

The billions of dollars of baby food market has initiated the addition of functional dairy ingredients, in turn, driving the growth of the functional dairy ingredient market. In addition, prebiotic fibers have become a popular plant-based functional dairy ingredient in several dairy products and functional beverages.

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Functional Dairy Ingredient Market Outlook

Fortified dairy products are now have shifted from a niche product segment to a mainstream product in the developed as well as in developing regions. This is attributed to increasing the consumption of functional food and beverages including functional dairy across the major urban conglomerations and tier 2 cities. This rise in demand for the functional dairy product is attributed towards the increase in demand for functional dairy ingredient over the near future. Functional dairy ingredient market has witnessed strong growth rates over past few years and is expected to continue the trend over the forecast period.

The key manufacturers are involving with a robust approach by not only broadening its product portfolio but also revamping manufacturing units to carter the rapidly changing ingredient demand fueled by tailor-made functional dairy products for the consumers. The functional dairy ingredient market has an essence of large international player capturing a significant amount of the market share in the overall offering and key regional functional dairy ingredient players capturing specific offerings in their geographies. A shift in product offering is expected to witness with players offering blends or multi-functional dairy ingredient over the forecast period.

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Global Functional Dairy Ingredient Market: Key Players

Some of the key players operating in the global functional dairy ingredient market are Angel Yeast Co., Ltd, Koninklijke DSM N.V, Glanbia Plc., Alra Ingredients, NZMP (Fonterra), Cargill Inc., Ganeden, Valio Oy, Ornua Co-op Limited, Lactalis Ingredients, Kerry Inc., FrieslandCampina International B.v, The Dow Chemical Company, Bunge Limited, E.I. du Pont de Nemours & Co, Chr. Hansen Holding A/S, Ingredion, BASF SE, Herbafood Ingredients Gmbh, Univar Inc., Archer Daniels Midland Co., Sensient Technologies Corporation, Alltech Inc., Ab Mauri, Ab Vista, and Lesaffre (Biospringer)

Opportunities for Functional Dairy Ingredient Market Participants

The opportunity for the participants in the global functional dairy ingredient market is optimistic with growing demand in Europe and the Asia Pacific where there is an increase production activity for infant food and other functional dairy products. With increasing per capita spending over food and beverage products, Asia Pacific is anticipated to witness the highest growth rate over the forecast period in functional dairy ingredient market as manufacturers in the region to ramp up production activity to feed the demand in the region.

Europe to witness a robust growth rate owing to increase in export activity of functional dairy ingredient over the forecast period resulting rapid procurement of functional dairy ingredient in the region by the key players. Latin America functional dairy ingredient market is expected to witness substantial growth rates owing to the increase in number new functional food and beverage players in the region.

North America functional dairy ingredient market is indicated to stay at its current pace with strong dynamics in terms of local consumption of dairy-based functional products to continue the growth of the market over the forecast period. New functional food players are expected to emerge in the Middle East and Africa region which is attributed to form a significant market for functional dairy ingredient over the forecast period.

Global Functional Dairy Ingredient Market: Segmentation

On the basis of nature, the global functional dairy ingredient market has been segmented as

  • Organic
  • Conventional

On the basis of type, the global functional dairy ingredient market has been segmented as

  • Proteins & Amino Acids
  • Vitamins
  • Minerals
  • Oils and Fatty acids
  • Probiotics & Prebiotics
  • Carotenoids
  • Fibers
  • Hydrocolloids
  • Others Functional Dairy Ingredient

On the basis of end-use, the global functional dairy ingredient market has been segmented as

  • Animal Based Dairy Products
  • Plant Based Dairy Products

On the basis of end-use, the global functional dairy ingredient market has been segmented as

  • Whole Milk
  • Confectionery
  • Yogurt
  • Cheese
  • Frozen Desert
  • Ice Cream
  • Baby Food
  • Beverages
  • Butters
  • Other Functional Dairy Ingredient End-uses

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